Many investors fail to realize that gold and other precious metals weren’t permissible investments in an IRA until fairly recently. It wasn’t until the Taxpayer Relief Act of 1997 that gold, silver, platinum, and palladium achieved retirement investment status.
Ultimately, the IRS put through a bill that was created to help taxpayers save money. In fact, this new rule was all about tax reduction, which is great for future retirees looking to grow their wealth.
When they allowed gold and precious metals IRA investing for retirement, the commodity needed to meet certain regulations and requirements. The requirements are as follows:
Unfortunately, for reasons that I’m about to get into, collectible coins including numismatic and semi-numismatic coins aren’t gold IRA acceptable.
Why not? Other than gold or silver US proof coins, collectibles do not meet the requirements laid out by the IRS. The only reason these proof coins are allowed is they meet the purity requirements, which is 99.5% pure for gold.
In fact, investors would benefit from steering clear of numismatic and semi-numismatic coins altogether. These investments not only failed to meet IRS approval demands, but they are also sold at a premium.
As an investor, you’ll pay more for these coins over the value of the precious metals content itself. Why? Because of their appearance. They are more attractive than typical gold and silver coin investments. To me, this doesn’t seem like a very good reason to invest in them at all.
Yes, it is. To comply with rules and regulations enforced by the IRS, you must store your precious metals in an approved depository. Many future retirees falsely believe that they can buy precious metals and store them in a vault at home. This isn’t the case because the rule states that physical gold must be secured in an IRS approved depository. And an eligible IRA custodian must manage the investment.
Believe it or not, this is a good thing. You never know who might come into your home and attempt to steal your precious metals. Plus, the depositories offer segregated and co-mingled storage. Keep your metals stalled in a vault with other investors or you pay for a dedicated vault all your own.
At the moment, the IRS has endorsed six different depositories for IRA approved Gold and precious metals IRA investments. You’ve likely heard of some of these companies and one or two of them might be new to you.
Absolutely! In fact, that’s the entire point of opening a gold IRA. As an investor, you want to own physical gold coins, bars, and bullion. This physical investment is what gains the greatest levels of wealth. Without owning physical gold, you couldn’t use it during a time of crisis if the US dollar ever collapsed.
First off, you must keep the precious metals IRA minimum fineness requirements in mind. They are:
In truth, the best way to discover top gold IRA investments is to connect with a gold company online. They will help you choose the proper investments for a precious metals IRA. And they’ll steer you in the right direction and help you properly allocate your funds into the best available investments.
In order to maintain its tax-advantaged status, your gold IRA account needs an appointed IRA custodian. Your custodian is there to make sure your investments are approved by the IRS. Plus, they handle all of the paperwork and reporting for tax purposes.
At this time, I’m inviting you to consider improving your future and retirement by opening a precious metals IRA. The best way to get started is to consider a good gold IRA company. I’ve reviewed many of these companies throughout the years and I’ve narrowed down a list of my favorites. Please do yourself a favor and check out this list before you get started. It will help you narrow down the best company to meet your gold IRA investing needs.